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What do we want to achieve?

What is happening?

Why is it happening?

What should we do about it?

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Annual plan control

Profitability control

Efficiency control

Strategic control

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‡ Prime responsibility-top management &
middle management
‡ Purpose-to examine whether the planned
results are being achieved
‡ Approaches ±
‡ ñ
 

‡ 
  

‡ ñ
  
‡  
 

‡ 
    

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‡ Measures and evaluates actual sales vs goals.
‡ Sales variance analysis-measures the relative
contribution of different factors to a gap in sales
performance
‡ Microsales analysis- looks at specific products, territories
and so forth that failed to produce expected results
‡ Market share analysis- to judge co¶s performance against
competitors
‡ Î 


  -co¶s sales as a percentage of
total market share
‡ ñ 
  -sales as percentage of total
sales to served market
‡ 
 
  -in relation to the largest
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Dorling Kindersley (India) Pvt. Ltd. 22-5
 ‡ 
 
 
 ±
helps company ensure that it is not
overspending to achieve sales goals
‡  
 
 helps find profitable
strategies and identify factors that
affect the company¶s rate of return on
net worth

Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 22-6

 
 

‡ Responsibility-marketing controller
‡ Purpose- to examine whether the company is
making /losing money
‡ Profitability by-
‡ Product
‡ Territory
‡ Customer
‡ Segment
‡ Trade channel
‡ Order size

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 ñ

 
 
‡ Ô 
 -
expenses in
selling/advertising/packing/billing
‡ Assigning functional expenses to
marketing entities-like for different
channels
‡ Prepare a Profit & loss statement for
each marketing entity
‡ Determining corrective action
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‡ Responsibility-line & staff management,

marketing controller
‡ Purpose ±to evaluate and improve the
spending efficiency and impact of marketing
expenditures
‡ Efficiency of-
‡ Sales force
‡ Advertising
‡ Sales promotion
‡ Distribution
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ÿ

‡ Logistics costs as a percentage of
sales
‡ Percentage of orders filled correctly
‡ Percentage of on-time deliveries
‡ Number of billing errors

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‡ Responsibility-top management,marketing
auditor
‡ Purpose ±to examine whether the company
is pursuing its best opportunities with respect
to markets, products & channels .
‡ Tools-
‡ Marketing effectiveness rating instrument
‡ Marketing audit
‡ Marketing excellence review
‡ Company ethical & social responsibility review

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Comprehensive, systematic, independent

periodic examination of a company¶s
or business unit¶s marketing
environment, objectives, strategies, and
activities with a view to determining
problem areas and opportunities,
and recommending
a plan of action to improve
the company¶s marketing performance.

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‡ Marketing environment audit

‡ Marketing strategy audit
‡ Business mission
‡ Marketing objectives & goals
‡ Strategy
‡ Marketing organisation audit
‡ Formal structure
‡ Functional efficiency
‡ Interface efficiency

Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 22-13

 ‡ Marketing systems audit
‡ MIS
‡ Marketing planning systems
‡ Control systems
‡ New product development systems
‡ Marketing productivity audit
‡ Profitability analysis
‡ Cost effectiveness analysis
‡ Marketing function audit
‡ Product
‡ Price
‡ Distribution
‡ Marketing communications
‡ Sales force
Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 22-14